Solution-What is cost average revenue and cost per unit

What is cost average revenue and cost per unit

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Reference no: EM132797427

XYZ Ltd is a company manufacturing and selling Cabinets. The estimated operating income of the company is presented herewith below:

Total

Units 500 Nos

Sales 470000

Less: Cost of Goods Sold

Direct material 120000
Indirect Manufacturing 110000

Total cost of goods sold 230000

Gross profit 240000

Selling Expenses

Sales Expenses 47000
Distribution 30000

Total Selling Expenses 77000

Profits before Admin expenses 163000

Admin Salaries 40000

Other Admin expenses 60000

Total Admin Expenses 100000

Net Operating Income 63000

problem 1. What is cost average revenue and cost per unit and what is the net average earning for each cabinet?

problem 2. If the company is able to price the product on total cost plus 10% margin, what should be price of the product?

Reference no: EM132797427

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What is cost average revenue and cost per unit

Reference no: EM132797427

Reference no: EM132797427

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